Question: Problem 1 2 - 1 9 ( Static ) Quality Cost Report [ LO 1 2 - 2 ] In response to intense foreign competition,
Problem Static Quality Cost Report LO
In response to intense foreign competition, Florex Company has taken steps to improve the quality of its products. A summary of its quality costs in thousands over the past two years is given below:
tableCosts in thousandsLast Year,This YearInspection$$Quality engineering,$$Depreciation of test equipment,$$Rework labor,$$Statistical process control,$$Cost of field servicing,$$Supplies used in testing,$$Systems development,$$Warranty repairs,$$Net cost of scrap,$$Product testing,$$Product recalls,$$Disposal of production defects,$$
Sales have been flat over the past few years, at $ per year.
Required:
Prepare a quality cost report for this year and last year.
Note: Enter amount values in thousands. Round your percentage answers to decimal places ie should be entered as
tableFlorex CompanyQuality Cost ReportLast Year,This YeartableAmount inthousandstablePercent ofSalestableAmount inthousandstablePercent ofSalesPrevention costs:Quality engineering,,,,Statistical process control,,,,Systems development,,,,Total prevention costs,Appraisal costsInspectionDepreciation of test equipment,,,,Supplies used in testing,,,,Product testing,,,,Total appraisal costs,Internal failure costs:Rework labor,,,,Net cost of scrap,,,,Disposal of production defects,,,,Total internal failure costs,External failure costs:Cost of field servicing,,,,Warranty repairs,,,,Product recalls,,,,Total external failure costs,Total quality cost,,,,
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